6. The GDP gap and the consequences of unemploymentOn the following graph, the black line shows potential real GDP and the blue line shows actual real GDP for a hypothetical country from 1990 to 2010.Use the green quadrilateral (triangle symbols) to shade the area between actual and potential real GDP that represents the positive GDP gap. Thenuse the purple quadrilateral (diamond symbols) to shade the area between actual and potential real GDP that represents the negative GDP gap.?GDP (Billions of 2000 dollars)10981910Potential ReaLGDP19901994Actual Real GDP1998YEAR200220062010Positive GDP GapNegative GDP GapWhich of the following are true of an economy operating below full employment? Check all that apply.The economy is in the peak phase of the business cycle.Actual real GDP is less than potential real GDP.The economy has an unemployment rate higher than the natural rate of unemployment.A worker with a college degree is more likely to be unemployed than a worker without one.

Real GDPReal gross domestic product (real GDP), also known as constant-price GDP, asset prices GDP,…

On the following graph, the black line shows potential real GDP and the blue line shows actual real GDP for a hypothetical country from 1990 to 2010. Use the green quadrilateral (triangle symbols) to shade the area between actual and potential real GDP that represents the positive GDP gap. Then use the purple quadrilateral (diamond symbols) to shade the area between actual and potential real GDP that represents the negative GDP gap. GDP (Billions of 2000 dollars) 10 2 1 0 Potential Real GDP 1990 1994 Actual Real GDP 1998 YEAR 2002 2006 2010 Positive GDP Gap Negative GDP Gap Which of the following are true of an economy operating below full employment? Check all that apply. The economy is in the peak phase of the business cycle. Actual real GDP is less than potential real GDP. The economy has an unemployment rate higher than the natural rate of unemployment.

On the following graph, the black line shows potential real GDP and the blue line shows actual real GDP for a hypothetical country from 1990 to 2010. Use the green quadrilateral (triangle symbols) to shade the area between actual and potential real GDP that represents the positive GDP gap. Then use the purple quadrilateral (diamond symbols) to shade the area between actual and potential real GDP that represents the negative GDP gap. GDP (Billions of 2000 dollars) 10 2 1 0 Potential Real GDP 1990 1994 Actual Real GDP 1998 YEAR 2002 2006 2010 Positive GDP Gap Negative GDP Gap Which of the following are true of an economy operating below full employment? Check all that apply. The economy is in the peak phase of the business cycle. Actual real GDP is less than potential real GDP. The economy has an unemployment rate higher than the natural rate of unemployment.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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